Question

3. How is the expected payoff of an event different than the expected value of an event?

a. The expected payoff takes into consideration the cost of the event, while the expected value of an event does not.

b. The expected value takes into consideration the cost of the event, while the expected payoff of an event does not.

c. The probability of each event is higher for expected payoff than for expected value.

d. none of the above

Answer 1

Answer: a

Explanation:

Expected value is a measure of what you should expect to get per game in the long run. The payoff of a game is the expected value of the game minus the cost.